THE GRID ON EVERY WALL
The Frequency-Impact Matrix: A Triage Grid Dressed as a Ruler
A frequency-impact matrix is a two-axis triage grid: probability on one axis, impact on the other, useful for escalation but too coarse to measure the tail.
FOUR CORNERS
Four corners, not four automatic answers
- Frequent and cheap: consider standardising or automating
- Frequent and severe: consider reducing, transferring, or insuring
- Rare and cheap: test whether the loss fits appetite
- Rare and severe: escalate, unfold, price, and name an owner
Used as triage, the fourth corner is where the value has always hidden — and where the AI wins you cannot measure wait, uncounted.
BORN TO ESCALATE
A military prioritisation lineage, explicit by 1984
- MIL-STD-882B (1984): sample severity × probability matrices
- The output was a qualitative priority code, not measured loss
- The managing activity set the acceptable-risk threshold and disposition
In that lineage, the grid focused management attention; it did not supply the decision — a way to decide what needs review, not how much risk exists.
THE COMPUTATION
…the quantum of risk is placed on one scale and the sacrifice involved in the measures necessary for averting the risk … is placed in the other; and … if it be shown that there is a gross disproportion between them … the defendants discharge the onus on them.
Lord Justice Asquith, Edwards v. National Coal Board, 1949
The seed of every later decision rule for the rare-and-severe band — and the reason a recognised latent exposure demands an answer, not a colour.
AS LOW AS REASONABLY PRACTICABLE
A rule the colour never was
- Three regions: unacceptable / tolerable only if ALARP / broadly acceptable
- In the middle, implement further controls unless their sacrifice is grossly disproportionate to the risk reduction
- The duty-holder must show why further reasonably practicable measures are not required
A demonstration is documented reasoning about specific measures and their cost, not a filled-in square — which is why a colour points nowhere and a rule points forward.
UNFOLD THE CELL
Unfold the cell into owned barriers
- 01Put the top event in the middle
- 02Threats to the left, consequences to the right
- 03A barrier on every path — preventive left, mitigating right
- 04Each barrier: an owner and a test date
- 05Name the scenario or premortem that tests the path
The natural next step after recognising a latent exposure: a barrier left to rot is itself a weak signal worth watching.
ONE LINE INSTEAD
Replace the buckets with a curve
One line, no range compression — and it can finally prove an averted loss with a curve, not an anecdote.
- Loss along the bottom, annual chance of exceeding it up the side
- Illustrative points: 10% above €2M; 1% above €20M
- Overlay a tolerance line, then compare the full loss profile
BOTH WAYS AT ONCE
The grid runs both ways
- Hillson, 2002: extend one risk process to threats and opportunities
- Threats on the left, opportunities on the right
- Paired responses include avoid / exploit and transfer / share
The windfall wing is a field of real options no process is watching for — the same corner, the same silence, the opposite sign.
The cell is the question, not the answer.
In 2008 a decision scientist showed a five-by-five can rank a rare catastrophe worse than chance; the theorem's detail lives in range compression.